Daihatsu Passion

More bad news: First, Australia, then UK and now China…

Daihatsu announced on January 7 that it had withdrawn from a 50-50 joint venture in China in partnership with China’s FAW Jilin Automobile.

The Japanese automaker has made this decision after it adjusted its sales strategy in the Chinese auto market. Daihatsu will sell all its shares in FAW Daihatsu (Jilin) Body Parts Co. Ltd. to FAW Jilin (an auto parts maker in China).

From January to December 2008, Daihatsu sold roughly over a million vehicles, with a growth of 4 percent from a year earlier. However, its sales and net profit had witnessed the first decline since 2002. Moreover, the Xenia, the only model that has been made in China in the form of technology transference, could hardly have a satisfactory sales performance.

In addition, in order to continue the technology licensing agreement, no changes will be made in the partnership between Daihatsu and FAW Jilin Auto with regard to the provision of parts and other activities.

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